E-
commerce
Business
Models: B-
2-C and C-
2-C
Categorizing E-commerce
Business Models
No one correct way to categorize
Text categorizes according to:
E-commerce sector (e.g., B2B)
E-commerce technology (e.g., m-
commerce)
Similar models appear in different
sectors
Companies may use multiple
business models (e.g., eBay)
B2C Business Models
E-tailer
Community provider (social network)
Content provider
Portal
Transaction broker
Market creator
Service provider
B2C Models: E-Tailer
Variations: Low barriers to
Online version of Revenue model: entry
traditional retailer Sales
Virtual merchant
Bricks-and-clicks
Catalog merchant
Manufacturer-direct
B2C Models: Community Provider
Revenue models:
Mainly, advertisement and
Provide online environment
(social network) where people affiliate marketing ; also includes
with similar interests can subscriptions, sales, transaction
transact, share content, and fees, and so on
communicate
Examples: Facebook, LinkedIn, Twitter,
Pinterest Value proposition: Create a
Niche social networks: WebMD fast, convenient one-stop
platform where users can focus
on their most important concerns
and interest
B2C Models: Content Provider
Digital content on the Web:
News, music, video, text, artwork
Revenue models:
Use variety of models, including advertising,
subscription; sales of digital goods
Key to success is typically owning the content
Example: Spotify, HBR, Financial times,
Guardians, CNN (free content)
B2C Business Models: Portal
Search plus an
integrated package Revenue models: Variations:
of content and
services Advertising, referral Horizontal/general (example:
Yahoo, A O L, M S N)
fees, transaction fees,
Vertical/specialized (portal)
subscriptions for (example: Sailnet)
premium services Search (example: Google, Bing)
B2C Models: Transaction Broker
Process online transactions for consumers
Primary value proposition-saving time and
money
Revenue model:
Transaction fees
Industries using this model:
Financial services (Online stock brokers)
Travel services (Expedia)
Job placement services (Monster)
B2C Models: Service Provider
Online services
Example: Google-Google Maps, Gmail, and
so on
Value proposition
Valuable, convenient, time-saving, low-cost
alternatives to traditional service providers
Revenue models:
Sales of services, subscription fees,
advertising, sales of marketing data
B2C/C-2-C Models: Market Creator/Digital
Platforms
Create digital environment where buyers and sellers can
meet and transact
Examples: Priceline, eBay, Amazon, Daraz
Revenue model: Transaction fees, fees to merchants for
access
On-demand service companies (sharing economy): platforms
that allow people to sell services
Examples: Uber, Airbnb
Digital Platform – Definition
A platform is a business based on enabling value-
creating interaction between external producers and
consumers. The platform provides an open,
participative infrastructure for these interaction and
sets governance conditions for them.
The platforms overarching purpose: to consummate
matches among users and facilitate the exchange of
goods, services, or social currency, thereby enabling
value creation for all participants.
Launching a Platform: Example
https://www.youtube.com/watch?v=sLq3yWJQ6aQ
Australia’s Canva Grows
Please download the case study “Australia’s Canva Grows” and
analyze the business model and business strategies of Canva
discussed in the case.
